Singapore average construction cost fourth highest in Asia: Turner and Townsend

Despite the challenging economic conditions, the construction outlook for Asia remains buoyant according the latest International Construction Market Survey. Tokyo and Osaka are Asia’s most expensive locations for construction, with Tokyo at US$4,567($6,167) per sq m and Osaka at US$4,497 per sq m. Hong Kong came in 11th and Singapore 31st globally with US$4,292 and US$3,307 per sqm respectively.

The survey reveals that Singapore experienced the highest rate of construction cost escalation last year at 12%. Turner & Townsend forecasts an 8% growth rate for construction expenses in the city-state for 2023 due to continued skills shortages and high labour and material costs. Singapore however remains supported by a large number of construction projects in the areas of public housing, infrastructure development, commercial projects and a blossoming biomedical sector.

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In Japan, a backlog of construction projects in the lead up to the 2025 World Expo in Osaka is driving construction activity. Meanwhile, Hong Kong and mainland China are also looking at recovery of their construction sectors following the lifting of Covid-19 restrictions.

The survey also highlights the warm up in construction activity in emerging economies like India, Indonesia, Malaysia, Vietnam and the Philippines as investments in real estate increase and more data centres, manufacturing units and life sciences facilities come up.

“Asia’s diverse and ambitious market economies place it in a strong position to command sustained construction growth and attract investment, particularly in industrial, science and technology, healthcare, transport and real estate developments,” comments Cheryl Lum, Director and Head of Data and Research at Turner & Townsend Asia.

Overall, the construction prospects in Asia remain robust with investments in industrial, science and technology, healthcare, transport and real estate developments expected to drive growth.